THE SOCIO-ECONOMIC CONTRIBUTION OF EUROPEAN SHOPPING CENTRES

EXECUTIVE SUMMARY
The shopping centre industry forms an essential layer of the bedrock that supports the European economy
and society. As a major facilitator of retail sales, it is an important contributor to private consumption–the
primary driver of European economic productivity. Beyond consumption, the industry has a significant impact
on other main economic components, notably investment and public spending.
However, the contribution of the shopping centre industry to society is at least equal to its economic importance.
These physical centres help to create and anchor vibrant civic spaces, providing an essential public
place between work and home and a dynamic marketplace for commerce.
Moreover, shopping centres are a prime generator of net employment growth among females and teens and
a critical source of flexible working opportunities for students and senior citizens. Given that virtually every
community across Europe has access to a shopping centre, these economic and social benefits are widely
distributed and accrue at a local, regional, national and multi-national scale.
In short, when the shopping centre industry thrives, so too do the socio-economic conditions in Europe. It
is fortunate then that, taken as a whole, the European shopping centre industry’s vital signs are strong and
retail real estate continues to perform well as measured by a number of key indicators. During a time when
supply has largely been maintained, the European Union has seen increases in both demand for space by
global retailers and in consumer demand for goods and services.
Furthermore, with over 90% of sales still occurring in physical locations, shopping centres remain central to
the success of European retail. The rise of sophisticated omni-channel retail strategies have demonstrated
conclusively that brick-and-mortar stores are an integral part of the consumer experience and are as relevant
now as they have ever been. Whatever the next big retail or technological innovation brings, shopping
centres will remain at the forefront of European commerce as they continue to adapt to meet the changing
needs and wants of consumers.
Select Key Points
• As of 2014, there were 9,263 shopping centres in Europe with over 190 million square metres (sq m) of
lettable area.
• European total retail sales and shopping centre-inclined sales reached all-time highs in 2014, totaling
more than €2.7 trillion and €524.7 billion respectively.
• European total retail sales generated more than €575.7 billion in value added tax (VAT) in 2014, of which
approximately €109.6 billion were derived from shopping centres.
• Approximately €48.7 billion were invested in retail assets across 26 European countries in 2014, of which
€20.6 billion were invested specifically in shopping centres.
• There are roughly 4.2 million shopping centre-related jobs in Europe with the retail industry as a whole
accounting for 1 out of every 11 jobs.
• The retail sector promotes social inclusion and offers flexible working opportunities, particularly for females,
students and retirees.
• Over 90% of total European retail sales still occur in-store. This preference is driven by a desire for a
tactile visual experience and a social interaction that cannot be replicated online.
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